– CVC has agreed to acquire 100% of Marathon, a leading global credit manager, in a cash and equity transaction with a base consideration valued at up to $1.2 billion.
– The transaction significantly expands CVC’s access to the US market through Marathon’s strengths in Asset-Based, Real Estate, Opportunistic, and Public Credit.
– Marathon’s capabilities complement CVC’s leadership in Liquid Credit, where it is the #1 European CLO manager, and European Direct Lending, where it ranks top three.
– Post-completion, the combination will increase CVC Credit’s Fee-Paying Assets under Management to approximately €61 billion.
– The combined platform creates a global, multi-asset credit manager spanning Private and Public Credit.
– The acquisition broadens CVC’s credit offering and enhances its ability to serve Institutional, Private Wealth, and Insurance clients globally.
– The transaction supports CVC’s target of double-digit FPAUM growth to €200 billion by 2028.
– CVC CEO Rob Lucas described the deal as highly strategic, accelerating growth and strengthening the platform, particularly in the US credit market.
– Marathon Co-Founder Bruce Richards highlighted strong cultural alignment and the opportunity to build a world-class global credit platform together.
– Closing consideration includes $400 million in cash and up to $800 million in CVC equity.
– Additional earn-out consideration of up to $200 million in cash and $200 million in equity is linked to Marathon’s performance from FY2027 to FY2029.
– The transaction is expected to be EPS neutral in 2027 and EPS accretive from 2028, before synergies.
– Bruce Richards and Lou Hanover will continue to co-head Marathon’s credit strategies, with Marathon rebranded as CVC-Marathon.
– Bruce Richards will join CVC’s Partner Board and co-manage the combined CVC Credit business alongside Andrew Davies.
– The transaction is subject to regulatory approvals and is expected to close in Q3 2026.
– Advisers to CVC include JP Morgan, Freshfields, Fried Frank, and Ernst & Young; advisers to Marathon include Sidley Austin.
– The cash portion will be funded from CVC’s balance sheet and undrawn credit facilities.
